How minimum payment is determined on credit card

Towards the beginning of 2003 (in the Jan-Feb timeframe) the Office of the Comptroller of the Currency (OCC) changed regulatory guidelines to force banks and other financial institutions to increase monthly minimum payments to cover at least 1% of the principal balance above and beyond all fees and interest incurred. Most banks prior to this used to charge 2-3%. In the end, it is up to the institution to determine the final equation. Interesting note, there does not seem to be a maximum that these institutions cannot go beyond.

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